Bailey Warns Defence Spending Fears Driving Bond Market Turmoil

The Governor of the Bank of England, Andrew Bailey, has sounded a warning about the turmoil in global bond markets. He pointed to concerns over defence spending as one of the factors driving up government borrowing costs.

Bailey cited slow growth, supply shocks, and an ageing population among the 'very substantial' challenges facing the economy.

The Bank's Governor also highlighted the impact of financing climate change on public debt, saying it was a significant pressure on bond markets.